In Nepal, FPO stands for Follow-On Public Offering. It is a process through which a company that is already listed on the Nepal Stock Exchange (NEPSE) offers additional shares to the public to raise capital.
During an FPO, the company issues and sells additional shares to existing shareholders and the general public. The purpose of an FPO is to raise funds for various reasons such as expansion, debt repayment, working capital, or funding new projects.
The FPO shares are offered at a specific price, allowing investors to purchase these shares based on their interest and investment capacity. The FPO process typically involves an application period during which interested investors submit their applications and payments to purchase the offered shares.
How does the share market work in Nepal?
The company conducting the FPO, with the help of authorized underwriters and merchant banks, ensures the proper management and distribution of the FPO shares. Once the FPO is completed, the newly issued shares become tradable on the NEPSE like any other listed shares.
FPOs provide an opportunity for both existing shareholders and new investors to participate in the growth and ownership of the company. It allows companies to raise additional capital, expand their shareholder base, and enhance liquidity in the secondary market.
Investors interested in participating in an FPO should carefully review the FPO prospectus, assess the company's financials and prospects, and consult with licensed brokerage firms or financial advisors for guidance before making investment decisions.
It's important to note that the specific details and regulations regarding FPOs in Nepal may vary, and it's advisable to refer to official sources such as the Nepal Stock Exchange (NEPSE) and consult with licensed professionals for accurate and up-to-date information regarding FPOs in Nepal.
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